Chapter 1 THE PROBLEM AND ITS SETTINGS Introduction Shopping stores contribute to business more significantly than traditional markets which were viewed as simple convergence of supply and demand. Shopping stores attract buyers and sellers, and induce customers providing enough time to make choices as well as a recreational means of shopping. However, competition between shopping stores, congestion of markets and traditional shopping centers has led mall developers and management to consider alternative methods to build excitement with customers. Henceforth, this paper studies the buying behavioral attributes of the shoppers towards attractiveness of shopping stores. Understanding the consumer buying attitudes and behavior is one of the key factors for an organization to successfully tap the business opportunities in the Philippines. This aspect is more crucial especially during crisis periods when there are
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Chapter 1
THE PROBLEM AND ITS SETTINGS
Introduction
Shopping stores contribute to business more significantly than
traditional markets which were viewed as simple convergence of supply and
demand. Shopping stores attract buyers and sellers, and induce customers
providing enough time to make choices as well as a recreational means of
shopping. However, competition between shopping stores, congestion of
markets and traditional shopping centers has led mall developers and
management to consider alternative methods to build excitement with
customers. Henceforth, this paper studies the buying behavioral attributes of
the shoppers towards attractiveness of shopping stores.
Understanding the consumer buying attitudes and behavior is one of
the key factors for an organization to successfully tap the business
opportunities in the Philippines. This aspect is more crucial especially during
crisis periods when there are number of changes in consumer attitudes and
behaviors. The marketing managers and advertisers need to know and
consider these changes while developing their promotional plans and media-
mixes. In the short term, behavioral dimensions maybe even more important
than lifestyle or brand attitudes.
According to Assael (1987), shopping behavior is the most unique for
behavior which the consumers exhibit. Gifts, clothing, groceries, gifts and
household items are some of the most common type of shopping which
consumers indulge in a highly frequent manner. But according to Dholakia
(1999), occasion and motives are also some crucial points which influence
the consumers shopping behavior.
Furthermore, the main aim of this paper is to investigate the consumer
behavior towards these shopping stores, with special reference to the stores
located in Iligan City. This study will be conducted on the first semester of
the academic year 2014-2015.
Theoretical Framework
In the quest to answer these queries on regards to the research, the
researchers have come to know some theories and principles that have some
bearing on this research.
The study done by Underhill (1999) revealed that, shopping is very
distinctive in nature, its more to just purchasing what one wants but it also
includes the customer’s acceptance of the product, brand or stores as well,
using multiple senses like- seeing, smelling, tasting, hearing and even
tasting (at times).
Reid and Brown(1996), proposes that the customer’s orientation
towards shopping may shed light into the way he/she indulge in shopping
and it may also tell the reason why he/she chooses a particular retail store
(including shopping stores). This would be of great help to marketers to
design the malls in a way so as to increase the shopping experiences of the
customers and coping up with the expectations and needs of the shopping
stores customers; as Underhill (1999), observed that nowadays, upon
entering shopping stores the environment is so vibrant.
Studies of customer behavior in shopping stores usually deal with (i)
identification of customers and (2) their buying behavior patterns. The aim of
such studies is to ascertain who buys where, what, when and how. In
addition, such studies endeavor to learn about customer response to sales
promotion devices (Applebaum, 2007). The "why" of customer behavior is a
separate and very difficult subject; it is not treated here. The knowledge of
customer behavior must precede any consideration of the reasons for the
behavior.
Conceptual Framework
This research focuses on the consumer’s buying behavior towards
shopping stores which is divided into two variables: i) independent variables
which include the age, gender, civil status, monthly salary, religion, and
educational attainment, ii) dependent variables which includes the consumer
buying behavior, the determination of the factors that affect the consumer’s
buying behavior and the identification of the these types.
Figure 1.Research Paradigm of the Study
Independent Variable
Respondents Profile
a. Age
b. Gender
c. Civil Status
d. Religion
e. Educational attainment
f. Occupation
g. Monthly salary
Dependent Variable
Consumer Buying Behavior
1. Factors affecting the consumer buying behavior:
a. Culturalb. Socialc. Personald. Psychological
2. Types of Consumer buying behavior
a. Impulse b. Routinec. Limitedd. Extensive
Statement of the Problem
This study aims to determine and the identify the consumer’s buying
behavior towards the shopping store through answering the following
questions:
1. What is the profile of the respondents?
1.1 Age
1.2 Gender
1.3 Civil Status
1.4 Religion
1.5 Educational Attainment
1.6 Occupation
1.7 Monthly Salary
2. Is there a significant relationship between the dependent variable and
independent variable?
3. What are the factors affecting the consumer’s buying behavior?
a. Cultural
b. Social
c. Personal
d. Psychological
4. What are the types of consumer buying behavior?
a. Impulse
b. Routine
c. Limited
d. Extensive
5. What are the findings, conclusion and recommendation on the study?
Significance of the Study
The researchers of this study believe that the findings will benefit the
following:
Shopping store. The output of this study will help establishments in
improving the dimension of their store and demographic ideas on what they
will do.
Student.The final output of this study can provide students, especially
those taking up business course marketing management to add information
that will help them. The knowledge they will get is to apply in the future.
College of Business Administration.The result of this study will
benefit the college for this will serve additional reference material for the
different program. This can also be used as a sample classroom discussions
on topics related to consumer buying behavior.
Researchers.The conduct of this study will provide the researcher
additional knowledge on the different manners of evaluating consumer
buying behavior.
Consumer. This study can provide final users of products or
services. The consumer's use the final product to improve their looks in
terms in fashion.
Scope and Delimitation of the Study
This study will provide us data and information about the consumer
buying behavior of the students and faculty in St. Michael’s College. It
targets to randomly select 100 students and 25 faculty members of St.
Michael’s College.
The shopping stores are identified in reference to their popularity and
services as reflected in the questionnaire. There were seven (7) selected
shopping stores in Iligan City namely Gaisano mall, Gaisano main, Novo,
Trendline Shopping Center, Unitop, Unicity, Fiesta mall, JBC. The researcher’s
chose these seven (7) shopping stores.
Definition of Terms
Consumer.One that consumes, especially one that acquires goods or
services for direct use or ownership rather than for resale or use in
production and manufacturing.
Consumer Buying Behavior.The process by which individuals search
for, select, purchase, use, and dispose of goods and services, in satisfaction
of their needs and wants. See also consumer decision making.
Shopping.A number or collection of articles purchased.
Store.A place where merchandise is offered for sale; a shop.
Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter sought to discuss the related literature and studies
of the “Consumer Buying Behavior towards Shopping Stores”. This will
provide the readers relevant information relative to this study.
Review of Related Literature
The study of consumers helps firms and organizations enhance their
marketing strategies and gain competitive advantages by understanding
issues related to their buying behavior. This paper provides an overview of
the consumer buying behavior in a Filipino style as a new perspective of
marketing in cultural consumerism. The study of consumer behavior helps
businesses and organizations to improve their current marketing strategies
by applying new and unique selling proposition. Filipino style in terms of
buying decisions presents a mixture of different cultures that surrounds their
rich heritage. A unique culture which will showcase their buying attitudes
towards existing strategies in today’s knowledge-globalized economy.
The idea of adding a major entertainment center to a shopping mall
has been gaining popularity over the past few years. Several of these so
called 'mega-malls' have been constructed in various regions of the country,
with substantial square footage allocated to large-scale entertainment
centers. In terms of shopping center patronage, Ballenger et al. (1977) found
that some consumers placed the greatest value on convenience and
economic attributes including convenience to home, accessibility, and the
presence of services such as banks and restaurants. Others, however
emphasized recreational attributes including atmosphere, fissionability,
variety of stores and merchandise. However, as mentioned earlier, there has
been very little academic research on mega-malls and the effects of
entertainment centers in such malls on consumer behavior. Most of the
research conducted on this relatively recent phenomenon has been done by
either mall developers in specific malls (e.g., Stiller & Smith, 1992) or by
private research agencies which provide a fee-based information service
(e.g., U.L.I. Publications). These studies have primarily focused upon defining
the trading area of the mall, the consumer characteristics, and the extent of
patronage at various stores and entertainment centers.
Shopping stores contribute to business more significantly than
traditional markets which were viewed as simple convergence of supply and
demand. Shopping malls attract buyers and sellers, and induce customers
providing enough time to make choices as well as a recreational means of
shopping. However, competition between malls, congestion of markets and
traditional shopping centers has led mall developers and management to
consider alternative methods to build excitement with customers. This study
examines the impact of growing congestion of shopping mall in urban areas
on shopping conveniences and shopping behavior. Based on the survey of
urban shoppers, the study analyzes the cognitive attributes of the shoppers
towards attractiveness of shopping malls and intensity of shopping. The
results of the study reveal that ambiance of shopping malls, assortment of
stores, sales promotions and comparative economic gains in the mall attract
higher customer traffic to the malls (Caravella, 2010).
Retailers and marketers often seek to learn how and why people shop.
The consumer decision- making process is a complex phenomenon. The
purchase of goods or services includes a number of factors that could affect
each decision. Decision making is more complex and even more important
for consumers today than in the past. Consumers are besieged by
advertising, news articles, and direct mailings that provide an abundance of
information, much of it with mixed messages. In addition, increases in the
number and variety of goods, stores, and shopping malls, and the availability
of multi component products and electronic purchasing capabilities have
broadened the sphere for consumer choice and have complicated decision
making. In the extant consumer behavior literature, most studies assume
that all consumers approach shopping with certain decision-making traits
that combine to form a consumer's decision-making styles. Academicians
and researchers have long been interested in identifying these underlying
decision styles of shoppers. For example, consumers are identified as